Forum Energy Technologies, Inc. (NYSE: FET) shares advanced today. The company announced it had completed the acquisition of Variperm Energy Services, a leading manufacturer of customized downhole technology solutions, providing sand and flow control products for heavy oil applications. Total consideration for the acquisition consisted of $150 million of cash and two million shares of FET’s common stock, subject to customary purchase price adjustments.
“This accretive acquisition enhances FET’s downhole and artificial lift product portfolio by adding a leading manufacturer of customized downhole technology solutions in sand and flow control for heavy oil applications. We expect the combined global footprint of FET and Variperm to benefit both legacy FET and Variperm products,” said CEO Neal Lux. “We are excited to welcome the Variperm employees to the FET team.”
The cash consideration for the transaction was funded from cash on hand, borrowings under our ABL credit facility, and a $60 million seller term loan. The seller term loan will mature in December 2026 and provides for an initial interest rate of 11% that is subject to escalation after the first anniversary of the loan. The seller term loan is payable at any time without penalty.
FET shares took on 15 cents to open Friday at $22.11.
